Holiday shopping season is now peak season for tax fraud, and the Internal Revenue Service is warning that criminals are working just as hard as retailers in the final stretch before Christmas. Instead of chasing deals, these scammers chase Social Security numbers, bank details and login credentials they can use to hijack refunds and steal identities long after the decorations come down.
I see the same pattern every December: criminals dress up old tax cons in festive wrapping, then push them through email, text, social media and even phone calls that sound official. The IRS is flagging a cluster of especially aggressive schemes this year, and understanding how they work is the best way to shut them down before they reach your wallet or your tax return.
Why the IRS is sounding a holiday alarm now
The IRS is not raising its voice lightly. The agency and its cybersecurity partners are tracking a sharp rise in criminal activity that targets people while they are distracted by travel, gift buying and year end deadlines. According to recent warnings, The IRS has stressed that anyone with a Social Security number or an Individual Taxpayer Identification Number, often shortened to ITIN, is a potential target, regardless of income level or whether they expect a refund at all. That broad pool of victims is exactly why identity thieves are so aggressive in the weeks leading up to Christmas.
Security experts working with The IRS and Security Summit partners have also pointed to a surge in global holiday phishing campaigns, with some reports describing increases of 327 percent in malicious traffic tied to festive lures. The IRS and Security Summit have used their annual awareness push to highlight how stolen data can be used to file fake tax returns and divert refunds before a legitimate taxpayer ever hits “submit” on their own return, a pattern that turns a quick December click into a problem that surfaces months later when a filing is rejected. By treating the holidays as the opening act of the 2025 filing season, the agency is trying to move taxpayers from reactive clean up to proactive defense.
Common holiday tax scams the IRS keeps seeing
Behind the seasonal wrapping, the IRS is seeing the same core tricks repeat: criminals impersonate the agency, dangle money or threaten penalties, then rush people into sharing sensitive data. Recent alerts describe a cluster of common holiday scams that revolve around fake tax refunds, bogus credits and fabricated balances due, all framed as urgent problems that must be fixed before the year ends. These schemes are designed to push people into handing over bank account numbers, Social Security details or online credentials that can be used to drain accounts or file fraudulent returns.
One detailed breakdown of common holiday scams flagged by the IRS notes that criminals are mixing tax themes with holiday hooks, such as fake year end “rebates,” charity deductions or special seasonal credits that do not exist, putting both money and identity information at risk. The same reporting warns that once thieves have enough data, they can open new accounts, take out loans or create further tax complications by filing returns in a victim’s name, leaving the real taxpayer to untangle the mess with the IRS for years. The pattern is clear: if a message ties holiday timing to tax urgency, it deserves extra scrutiny.
Phishing emails, smishing texts and fake IRS contacts
Digital lures are the workhorses of holiday tax fraud. Criminals send phishing emails that mimic official IRS notices, complete with logos and fake case numbers, and they blast out “smishing” texts that claim a problem with a refund or a chance to claim a special payment. These messages often include links to lookalike websites that quietly capture login credentials or prompt victims to upload photos of driver’s licenses and Social Security cards. Once that information is in criminal hands, it can be sold or used directly to commit identity theft.
Guidance on how to recognize tax scams and fraud stresses that scammers mislead people about tax refunds, credits and payments, then pressure them for personal and financial information or push them to click links that lead to fake sites instead of the official IRS.gov domain. Another detailed warning on what the common scams look like explains that phishing emails and smishing texts are a major threat because they can install malware or harvest data in seconds, causing long term financial damage that far outlasts the holidays. The safest move is simple: never click a link or call a number that arrives in an unsolicited message claiming to be from the IRS, and instead navigate directly to the agency’s website or use a known phone number.
Gift card cons and “pay now” holiday pressure
One of the most persistent holiday twists on tax fraud is the demand for payment in gift cards. Scammers pose as IRS agents, employers or even relatives, then insist that a supposed tax bill, penalty or urgent obligation must be paid immediately with cards from retailers like Target, Walmart or Apple. The pitch often leans on holiday timing, warning that failure to pay before Christmas will trigger lawsuits, arrests or wage garnishments. That mix of fear and festive urgency is designed to override common sense.
Consumer alerts focused on holiday fraud have singled out these tactics with blunt language such as “Let Holiday Scammers Steal Your Cheer” and “Beware of Gift Card Scams,” noting that messages can even come from compromised email accounts that appear to belong to a boss or family member. A separate tax focused breakdown of festive frauds lists gift card demands alongside W 2 scams and fake tax relief offers as key threats as we approach the 2025 tax season, underscoring that any request to pay the IRS with gift cards, cryptocurrency or wire transfers is a red flag. The real IRS does not accept tax payments in gift cards, period, so treating any such demand as a scam is a safe rule of thumb.
Stimulus check rumors and fake “December payments”
Every time economic anxiety rises, scammers rush in with promises of free money, and this December is no exception. Rumors are circulating online about new federal stimulus checks supposedly arriving before Christmas, often framed as automatic “December payments” that people risk losing if they do not act fast. Fraudsters piggyback on that buzz by sending emails, texts and social media messages that claim to help people “register” for these non existent checks, then harvest Social Security numbers, bank routing details and other sensitive data in the process.
Reporting on these rumors makes a critical point: Any new federal payments would require congressional approval, and no legislation authorizing additional stimulus checks is pending. The same coverage notes that rumors claiming that new payments are already approved are false, and that the IRS is warning taxpayers to treat unsolicited offers to help them claim such money as scams and to report them to the IRS. When a message about stimulus cash arrives out of the blue, especially if it asks for banking information or an upfront “processing fee,” the safest assumption is that it is a con, not a Christmas bonus.
Red flags the IRS says should stop you in your tracks
Across all of these schemes, the warning signs are remarkably consistent. Scammers lean on urgency, secrecy and pressure, insisting that you must act immediately, that you cannot talk to anyone else, and that bad things will happen if you do not comply. They often claim to be from the IRS, a tax professional or a government program, then ask for information the real agency would never request by email or text, such as full Social Security numbers, complete bank account details or one time passcodes for financial apps.
Official guidance on tax scam warning signs explains that scammers mislead people about tax refunds, credits and payments, pressure them for personal and financial information, and direct them to fake websites instead of IRS.gov. A separate IRS resource on how to recognize tax scams and fraud reinforces that unsolicited contacts demanding payment by unusual methods, threatening arrest or deportation, or promising “too good to be true” refunds are all classic hallmarks of a con. If a message checks even one of those boxes, I treat it as suspect until I can verify it independently through a trusted channel.
How an Identity Protection PIN can lock down your tax return
While no single step can eliminate risk, one of the most powerful tools taxpayers have is the Identity Protection PIN, often shortened to IP PIN. This is a six digit number that the IRS issues to eligible taxpayers and that must be included on electronic or paper tax returns for the agency to accept the filing. If a criminal tries to file a return in your name without that PIN, the IRS rejects it, which can stop refund theft before it starts. In effect, the IP PIN acts like a second lock on your tax account.
The IRS has created an online “Get an Identity Protection PIN” tool that lets eligible taxpayers request this extra layer of security after passing identity verification checks. Separate cybersecurity guidance aimed at consumers notes that You can log on to get an IP PIN tool offered by the IRS and that you should handle it according to your organization’s cybersecurity policy if you are using a work device, underscoring that the PIN itself is sensitive information that must be stored carefully. For people who have already experienced identity theft, or who simply want to get ahead of potential fraud before the 2025 filing season, enrolling in the IP PIN program is one of the most concrete defenses available.
Practical steps to stay safe while you shop and scroll
Awareness is only useful if it translates into habits, and the IRS is leaning on a few practical moves that can dramatically cut your risk. First, it is worth treating any tax related message that arrives through email, text or social media as untrusted until proven otherwise. Instead of clicking links, I recommend going directly to the official IRS website or using a bookmarked login for your tax software. Keeping devices updated, using strong unique passwords and turning on multi factor authentication for financial and tax accounts also makes it harder for criminals to turn a single stolen password into a full takeover.
Educational campaigns tied to TAX TIP 2025 and a broader Holiday Scam Alert have hammered home that every year, scammers try to steal not just money but holiday joy, often by exploiting the same weak spots in digital hygiene. The IRS and Security Summit partners have used their National Tax Security Awareness Week to remind taxpayers, tax professionals and businesses to be extra aware during the upcoming filing season because identity thieves are focused on stealing sensitive information to file fake tax returns and steal refunds. Short of becoming a full time security analyst, the most realistic approach for most people is to slow down, verify independently and assume that any unexpected demand for money or data could be a setup.
What to do if you think you have been targeted
Even with the best precautions, some people will click a bad link or pick up a call from a convincing impostor, and what happens next can make the difference between a close call and a long term crisis. If you suspect you have shared information with a scammer, the first step is to contact your bank or card issuer, change passwords on any affected accounts and enable multi factor authentication where it is not already in place. It is also wise to place fraud alerts with the major credit bureaus and monitor statements closely for unauthorized activity in the weeks that follow.
From a tax perspective, the IRS encourages anyone who receives suspicious contacts or believes their information has been misused to report them directly so investigators can track patterns and shut down active campaigns. Official resources on how to recognize tax scams and fraud explain how to forward phishing emails, report smishing texts and document bogus phone calls, while broader consumer security newsletters emphasize that You should report incidents promptly and then follow your organization’s cybersecurity policy if the compromise involved work systems. For people who discover that a fraudulent return has already been filed in their name, contacting the IRS, filing an identity theft affidavit and enrolling in the Identity Protection PIN program are key steps toward regaining control of their tax identity.
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Grant Mercer covers market dynamics, business trends, and the economic forces driving growth across industries. His analysis connects macro movements with real-world implications for investors, entrepreneurs, and professionals. Through his work at The Daily Overview, Grant helps readers understand how markets function and where opportunities may emerge.
